Hello all - I am new to trading options, and learning little by little about the various strategies of trading options. I have an idea for a trade, but have a few questions regarding margin requirements and the risk to reward ratio. here are the details of the trade the underlying is UVXY last traded at 6.90 at close July 27, 2012 buy to open 100 shares of UVXY @ 6.90 then do a Short Strangle exp Dec 22 2012 7.0 call / 6.0 put bid = 4.30 How much margin money ( if any ) would be needed to put on this trade assuming that it is a margin account ? How do you calculate the break even point ? How do you calculate the risk / reward ratio ?